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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-2.75 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -3.39 suggests that the company is not a manipulator.

PAM' s Beneish M-Score Range Over the Past 10 Years
Min: -8.36   Max: 2.82
Current: -2.75

-8.36
2.82

During the past 12 years, the highest Beneish M-Score of Pampa Energia SA was 2.82. The lowest was -8.36. And the median was -2.68.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.6733+0.528 * 0.3646+0.404 * 1.3834+0.892 * 1.1855+0.115 * 0.7963
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9969+4.679 * -0.1222-0.327 * 1.0001
=-3.39

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $201.6 Mil.
Revenue was 285.563201863 + 289.422760887 + 138.909217338 + 202.642544909 = $916.5 Mil.
Gross Profit was 6.83319638455 + 64.9019446727 + -6.46102140153 + 3.57806068728 = $68.9 Mil.
Total Current Assets was $613.9 Mil.
Total Assets was $2,327.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,133.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $75.9 Mil.
Selling, General & Admin. Expense(SGA) was $230.4 Mil.
Total Current Liabilities was $852.3 Mil.
Long-Term Debt was $485.1 Mil.
Net Income was -45.7716379074 + 41.6049027664 + 159.298385228 + 4.28288822948 = $159.4 Mil.
Non Operating Income was -11.9175568337 + 27.655847713 + 113.126168585 + -16.9696776321 = $111.9 Mil.
Cash Flow from Operations was 89.0213640099 + 11.8792796494 + 140.919029591 + 89.9869180945 = $331.8 Mil.
Accounts Receivable was $252.5 Mil.
Revenue was 193.438067463 + 192.738755286 + 194.362062917 + 192.576077919 = $773.1 Mil.
Gross Profit was -0.509547130358 + 13.9011531004 + 2.06654192492 + 5.71813754603 = $21.2 Mil.
Total Current Assets was $650.9 Mil.
Total Assets was $2,280.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,218.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $64.1 Mil.
Selling, General & Admin. Expense(SGA) was $194.9 Mil.
Total Current Liabilities was $869.9 Mil.
Long-Term Debt was $440.5 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(201.577307587 / 916.537724997) / (252.528916525 / 773.114963585)
=0.21993345 / 0.32663825
=0.6733

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(21.176285441 / 773.114963585) / (68.852180343 / 916.537724997)
=0.02739086 / 0.07512204
=0.3646

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (613.912558203 + 1133.20562859) / 2327.05998357) / (1 - (650.916744621 + 1218.68398173) / 2280.41281021)
=0.24921652 / 0.18014812
=1.3834

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=916.537724997 / 773.114963585
=1.1855

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(64.1293000883 / (64.1293000883 + 1218.68398173)) / (75.9030555236 / (75.9030555236 + 1133.20562859))
=0.04999114 / 0.06277604
=0.7963

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(230.38603931 / 916.537724997) / (194.946776658 / 773.114963585)
=0.25136558 / 0.25215755
=0.9969

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((485.056080526 + 852.287250068) / 2327.05998357) / ((440.523413856 + 869.936169042) / 2280.41281021)
=0.57469225 / 0.57465893
=1.0001

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(159.414538316 - 111.894781832 - 331.806591345) / 2327.05998357
=-0.1222

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -3.39 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.46250.49210.75121.15151.04981.01881.75881.09121.0771
GMI 1.59381.0931.05941.21291.02692.2833-1.559-1.74612.9801
AQI 0.26911.09310.76410.81160.85742.41230.59541.15070.8701
SGI 1186.27912.47460.92681.13621.28590.97680.54750.8620.7625
DEPI 3.20070.50181.09211.00710.90240.90071.2221.05831.0545
SGAI 0.03550.90881.13751.04041.25870.85221.69281.11411.1899
LVGI 4.9181.11770.93341.12291.3190.99011.24931.00450.9263
TATA -0.0243-0.0635-0.1047-0.0554-0.0547-0.1495-0.0778-0.1315-0.1087
M-score 1,054.26-1.92-3.32-2.49-2.64-1.92-4.24-4.54-2.14

Pampa Energia SA Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.57751.66841.44531.19481.12741.06531.02570.84730.93540.6733
GMI -2.379425.3858-0.7333-1.7258-0.55440.01780.54391.99580.37220.3646
AQI 0.57160.86880.79621.15071.14481.0730.94410.87010.8741.3834
SGI 0.55880.63790.7010.78730.88660.9311.01230.96921.08041.1855
DEPI 0.97281.03691.13781.15331.31551.14921.15390.8650.78110.7963
SGAI 1.6841.35111.27571.09551.07281.13521.10741.23481.08530.9969
LVGI 1.28791.18741.14411.00450.86850.8820.92250.92630.95041.0001
TATA -0.0725-0.1701-0.1883-0.1377-0.1114-0.1356-0.086-0.1361-0.1183-0.1222
M-score -4.859.72-4.29-4.51-3.68-3.57-3.09-2.84-3.43-3.39
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